WEBVTT - Whoa, That ETF Got Big 0:00:05.880 --> 0:00:13.360 Well, crede trillions. I'm Joel Webber and I'm americall tunas Eric. 0:00:13.440 --> 0:00:16.120 We were actually kind of stumped on what we're gonna 0:00:16.200 --> 0:00:20.440 do on this episode, and then you pulled a proverbial 0:00:20.680 --> 0:00:22.840 rabbit out of the hat, and I think it's a 0:00:22.840 --> 0:00:25.720 great one. You want to tell us about your idea? Yeah, 0:00:25.760 --> 0:00:29.639 So the idea was something that I've been tweeting. I 0:00:29.680 --> 0:00:32.600 have certain recurring tweets, and one of the ones that 0:00:32.640 --> 0:00:35.599 I've been doing a lot lately is this tweet where 0:00:35.640 --> 0:00:38.120 I say, on today's edition of I can't believe how 0:00:38.200 --> 0:00:40.760 much an assets that E t F has now blah 0:00:40.800 --> 0:00:44.239 blah blah blah this heat, you know. And because what 0:00:44.360 --> 0:00:47.239 happens is in our team, we'll just drop tickers in 0:00:47.320 --> 0:00:50.280 and we'll look them up, and we'll be researching things 0:00:50.320 --> 0:00:53.440 and over and over and over. I'm like, that thing 0:00:53.479 --> 0:00:55.920 has two billion, that thing has four billion, that thing 0:00:56.000 --> 0:00:58.840 has five undred million. I just when I last time 0:00:58.840 --> 0:01:00.600 I checked on it, I was like, will probably just 0:01:00.640 --> 0:01:02.960 sort of live in this little corner here, you know, 0:01:03.240 --> 0:01:05.200 maybe it'll get like ten million a year. I just 0:01:05.720 --> 0:01:09.280 am surprised at how big some of these non vanguardian 0:01:09.920 --> 0:01:11.920 E t F s are getting ones that you just 0:01:12.200 --> 0:01:14.840 rode off a little bit and you're like, what's going 0:01:14.880 --> 0:01:16.880 on here? And then you're like, well, E t F 0:01:16.959 --> 0:01:18.640 are taking in so much cash. I mean, I guess 0:01:18.680 --> 0:01:20.680 it has to go somewhere. It's not all going to Vanguard. 0:01:21.040 --> 0:01:23.480 So I thought we would just look at some e 0:01:23.560 --> 0:01:26.119 t F that we were you know, we looked at one, 0:01:26.200 --> 0:01:28.479 you know, one day, and we're just blown away about 0:01:28.480 --> 0:01:30.440 how big they got and maybe we can talk about why. 0:01:30.720 --> 0:01:33.000 And I thought the significance of this also was like, 0:01:33.080 --> 0:01:37.240 here we are a year after really the pandemic started 0:01:37.280 --> 0:01:41.200 to take hold and markets bottomed out, and now a 0:01:41.280 --> 0:01:44.120 year later, we're, you know, back in the ball market. 0:01:44.520 --> 0:01:49.240 Everything's up, and it it bears uh exploration of a 0:01:49.280 --> 0:01:53.280 few things that might have some underbellies. So joining us 0:01:53.320 --> 0:01:55.200 on this episode not just Eric and Mean, we have 0:01:55.280 --> 0:01:57.880 Todd rosen Bluth, the head of E t F and 0:01:57.920 --> 0:02:03.080 mutual fund research at cf are, A Athanasios, Sara Fhagus 0:02:03.080 --> 0:02:07.120 who's an E t F analyst with Bloomberg Intelligence, and 0:02:07.240 --> 0:02:10.880 Clear Balantine who's an E t F reporter with Bloomberg News. 0:02:10.919 --> 0:02:14.600 They've all been regulars on the show before this time. 0:02:14.639 --> 0:02:18.320 On Trilliance. Dude, I can't believe how big this et 0:02:18.440 --> 0:02:25.920 F got. Todd, Claire Athanasios, welcome back to Trillions. Great 0:02:25.960 --> 0:02:28.240 to be with you. I had to be here. Yeah, 0:02:28.280 --> 0:02:31.400 thanks for having us. Hey, by the way, Joel, Yeah, Um, 0:02:31.480 --> 0:02:33.040 do you know what today is? It's funny we have 0:02:33.080 --> 0:02:36.480 Todd on the show. It's timely. I would say, you know, 0:02:37.040 --> 0:02:41.600 late March, what what's what's going on? This is this 0:02:41.680 --> 0:02:44.800 is the end of super Bet two. Okay, so this 0:02:44.880 --> 0:02:49.680 is the due date? So okay. A year ago when 0:02:49.760 --> 0:02:52.680 the Active non Transparent et F started to launch and 0:02:52.720 --> 0:02:54.440 there was all that hype building up, It's like, oh, 0:02:54.480 --> 0:02:56.760 here come these big fish to you, real price American 0:02:56.800 --> 0:03:00.640 Century Fidelity. Um. Todd and I started to have spats 0:03:00.680 --> 0:03:03.280 both on panels and on Twitter about how big they 0:03:03.320 --> 0:03:06.880 would get. So I said it over under at ten 0:03:06.919 --> 0:03:09.400 billion dollars in the first year for what we call 0:03:09.480 --> 0:03:14.040 answer active non transparents. He took the over so as 0:03:14.080 --> 0:03:16.520 the year went on it looks it looked pretty bad 0:03:16.560 --> 0:03:19.560 early and it stayed bad. They have about a billion 0:03:19.680 --> 0:03:22.880 so I had nine billion dollars to spare. The bet 0:03:22.919 --> 0:03:27.320 was due April one, and he owes me a steak dinner. Unfortunately, 0:03:27.800 --> 0:03:30.799 we would normally be physically there and we'd be going 0:03:30.800 --> 0:03:33.080 out to dinner that night, and then I would tweet 0:03:33.120 --> 0:03:35.240 pictures of the steak and him signing the bill and 0:03:35.280 --> 0:03:38.960 all that. It would be. We have to postpone that though, 0:03:39.280 --> 0:03:40.840 But at least you could do it. You could do 0:03:40.880 --> 0:03:44.320 it on Zoom m I like Todd, I want to 0:03:44.320 --> 0:03:46.480 hang out with them so we have a good time together. 0:03:46.760 --> 0:03:48.920 You could hang out. It could be a Zoom steak dinner. 0:03:49.240 --> 0:03:52.920 Now that's the pressing. Yeah, that's weird pressing. We've got 0:03:52.920 --> 0:03:55.520 to do this in person. So, yes, I lost the bet. 0:03:55.600 --> 0:03:57.920 Let's put the numbers right. It's about one point five 0:03:58.000 --> 0:04:01.440 billion dollars in total for these e t f s. Again, 0:04:01.480 --> 0:04:04.440 it doesn't matter, it's much less than ten billion dollars. 0:04:04.440 --> 0:04:07.920 But I lost this bet. Active non transparent ets have 0:04:08.040 --> 0:04:12.160 not delivered the assets we expected. They've been under the radar, 0:04:12.240 --> 0:04:14.200 and that's of course a good segment for this show 0:04:14.240 --> 0:04:16.160 because there's things that are under the radar that are 0:04:16.160 --> 0:04:20.920 actually gathering assets instead of these products. Okay, so Todd, 0:04:20.960 --> 0:04:23.119 let's start with you. What what What's one that's jumped 0:04:23.120 --> 0:04:26.560 out at you? So my pick on this and is 0:04:27.040 --> 0:04:30.560 a wisdom Tree product. It's Wisdom Trees Emerging Market X 0:04:30.600 --> 0:04:34.880 State Owned Enterprises et F. The ticker is x s 0:04:34.920 --> 0:04:39.760 o E. It's got four point seven billion dollars in assets, 0:04:39.760 --> 0:04:43.160 over three billion dollars of inflows in just the past year. 0:04:43.760 --> 0:04:46.800 It's actually the second largest of Wisdom Trees ETF. You 0:04:46.839 --> 0:04:48.920 know people probably in fact, I was on this show 0:04:49.000 --> 0:04:52.240 talking about currency head GTS, which is what wisdom Tree 0:04:52.279 --> 0:04:55.760 has been synonymous for for over a decade. It's now 0:04:55.800 --> 0:04:59.360 the second largest, this XO s o E product. And 0:04:59.560 --> 0:05:04.000 why because it's outperforming by having a governance slant on 0:05:04.080 --> 0:05:07.720 emerging markets. It's outperforming I E m G, the Eye 0:05:07.800 --> 0:05:12.679 shares cheap emerging market product, Vanguard's Emerging market product vw 0:05:12.800 --> 0:05:15.120 O by over three hundred basis points in the last 0:05:15.200 --> 0:05:18.640 three years. And performance works. You know, the investors are 0:05:18.680 --> 0:05:22.520 getting uh, a E s G oriented emerging market product 0:05:22.560 --> 0:05:25.719 from wisdom Tree uh And and it's working out. But 0:05:25.760 --> 0:05:27.640 I didn't realize how big it was. Four point seven 0:05:27.640 --> 0:05:30.039 billion dollars is much larger than I would have thought. 0:05:30.800 --> 0:05:33.880 Does that worry you No, I think it's a great sign. 0:05:33.920 --> 0:05:35.760 I think we we you know, we're seeing we can 0:05:35.800 --> 0:05:38.400 have a different debate about E S G and the 0:05:38.480 --> 0:05:40.719 viability of those products. But I think it's great that 0:05:40.800 --> 0:05:43.720 it's moved to emerging markets and with a single pillar 0:05:43.880 --> 0:05:47.760 the G in governance as opposed to something that's focused 0:05:47.800 --> 0:05:50.520 on environmental which has certainly got more of the attention 0:05:50.560 --> 0:05:52.560 as of late. You know what, I almost picked that 0:05:52.600 --> 0:05:55.120 one at once have been on my radar. I looked 0:05:55.120 --> 0:05:57.400 at a couple of months ago. I didn't realize it 0:05:57.560 --> 0:06:00.960 got so big because I think it's right behind de Grow, right, 0:06:01.000 --> 0:06:03.080 I think it was always liked grow and that one 0:06:03.160 --> 0:06:06.480 was the largest products. But it's funny we were thinking 0:06:06.480 --> 0:06:07.880 the same I looked at it. I didn't end up 0:06:07.960 --> 0:06:10.600 choosing that one, but it definitely caught my eye. That 0:06:11.000 --> 0:06:13.400 to me is a perfect example time that might be 0:06:13.400 --> 0:06:16.039 better than both of mine. That is a lot of money. 0:06:16.080 --> 0:06:19.000 And also it's interesting two things on that one. Um 0:06:19.160 --> 0:06:21.800 Wisdom Tree has done. I thought a good job of 0:06:22.640 --> 0:06:25.960 diversifying themselves out of that currency hedged craze that has 0:06:26.000 --> 0:06:28.479 come and gone, and this is a great product and 0:06:28.520 --> 0:06:31.080 it also fits with their idea of like hey, I'm 0:06:31.080 --> 0:06:33.279 gonna give you this thing. I'm gonna take this thing out, 0:06:33.520 --> 0:06:35.120 you know, like take the yen out of Japan for 0:06:35.240 --> 0:06:38.039 d x J. This is like taking the socialism out 0:06:38.040 --> 0:06:40.719 of the the emerging markets. And at the rap On 0:06:40.800 --> 0:06:42.679 e M has always been well, a lot of these 0:06:42.920 --> 0:06:45.240 h companies are stayed owned. They don't move that much. 0:06:45.680 --> 0:06:48.120 Um blah blah blah. We want more capitalism in there, 0:06:48.320 --> 0:06:50.480 and the E t F really I think does that well. 0:06:50.560 --> 0:06:54.200 So it's a not just performance, but the the the 0:06:54.320 --> 0:06:57.880 narrative and the solution it's providing is pretty solid too. 0:06:58.279 --> 0:07:00.320 So Joe, I need an independent ruling on this. It 0:07:00.400 --> 0:07:03.400 sounded like Eric says my pick is better than his picks, 0:07:03.440 --> 0:07:05.440 and so the bet evens out. We just are going 0:07:05.480 --> 0:07:07.040 to split the check when we have a steak. Is 0:07:07.080 --> 0:07:09.039 that right? Is that how you heard? I did not? 0:07:09.200 --> 0:07:11.800 I heard a fraction of that. Um. The other part 0:07:11.880 --> 0:07:13.720 I think was a little uh. It took a little 0:07:13.720 --> 0:07:25.040 liberty with your listening skills there. But good pick. Nice try, Claire. 0:07:25.040 --> 0:07:26.760 I want to bring you in what what's your first pick? 0:07:27.320 --> 0:07:31.400 So mine aren't in the billions like Todd's, but the 0:07:32.200 --> 0:07:36.040 one that caught my eye most recently, um is Buzz, 0:07:36.160 --> 0:07:39.640 which is the Van Neck vectors Social Sentiment ETF, and 0:07:39.680 --> 0:07:42.720 that's the one that made a lot of UM buzz 0:07:43.120 --> 0:07:48.640 earlier this month when Dave Portnoy backed it UM. Looking 0:07:48.760 --> 0:07:51.360 at our data, let me pull it up. They got 0:07:52.360 --> 0:07:56.880 two d and eighty million dollars on its first day UM, 0:07:56.920 --> 0:08:00.840 which is just pretty incredible UM for a day launched. 0:08:01.000 --> 0:08:04.200 Everything that I've been doing recently is comparing back to 0:08:04.280 --> 0:08:08.200 those UM non transparent funds, because it's been a you know, 0:08:08.280 --> 0:08:12.960 about one year since those launched UM. And I checked 0:08:12.960 --> 0:08:16.080 this morning and the largest one of those act of 0:08:16.160 --> 0:08:22.120 non transparent funds has two one million. That's the Fidelity 0:08:22.520 --> 0:08:24.840 blue Chip Growth e t F. And and these are 0:08:25.520 --> 0:08:28.200 huge names that you know, launched these strategies that we're 0:08:28.240 --> 0:08:31.080 supposed to be some of the biggest products this year, 0:08:31.160 --> 0:08:33.800 and yet you see this e t F backed by 0:08:33.960 --> 0:08:37.720 Dave Portnoy that gets more than than the best AUNT 0:08:38.320 --> 0:08:42.280 did in a whole year, or about as well UM 0:08:42.320 --> 0:08:45.400 in just a single day. Yeah, I'll jump in here 0:08:45.400 --> 0:08:48.400 on that. You're right. I said this would probably get 0:08:48.400 --> 0:08:52.200 three million from the Portnoy effect. It completely past that. 0:08:52.760 --> 0:08:56.000 And it's interesting. Buzz launched four or five years ago 0:08:56.400 --> 0:08:59.679 and it got no interest. So somebody asked me the day, well, 0:09:00.120 --> 0:09:02.120 what percentage of the assets do you think is because 0:09:02.120 --> 0:09:05.680 of port And I'm like, because we saw this before. 0:09:06.120 --> 0:09:08.080 The buzz on its own was only able to get 0:09:08.400 --> 0:09:12.080 a tiny fraction of that volume and assets literally like 0:09:12.120 --> 0:09:14.800 one percent of it, to be honest, um, And so 0:09:15.120 --> 0:09:19.040 it really I mean also having the fact that Portnoy 0:09:19.200 --> 0:09:22.600 is a day trader himself and on Twitter, it's so 0:09:22.679 --> 0:09:24.840 in line with his very being, and I think this 0:09:24.960 --> 0:09:28.920 is actually a a smart marketing move as opposed to 0:09:29.000 --> 0:09:32.160 hiring say some celebrity who doesn't have anything to do 0:09:32.440 --> 0:09:36.080 with investing. I think we'll see more of this, And 0:09:36.400 --> 0:09:38.720 what fascinates me is the fact that you know, if 0:09:38.760 --> 0:09:40.360 you look under the hood of this E t F, 0:09:40.440 --> 0:09:42.920 it's not like you know, game stop in a MC 0:09:43.120 --> 0:09:46.120 some of these like day Trader Darlin's um the top 0:09:46.160 --> 0:09:49.200 holding is Apple and then Boeing. I mean, it's it's 0:09:49.640 --> 0:09:52.480 you know, you wonder how much of this is people 0:09:52.520 --> 0:09:54.439 looking at what's in the E t F versus just 0:09:54.480 --> 0:09:57.600 seeing Portnoy in jumping in. Yeah, this has nothing to 0:09:57.640 --> 0:10:00.920 do with people looking at what's inside the t which 0:10:00.960 --> 0:10:03.680 which gives me as much frustration as the fact that 0:10:03.720 --> 0:10:06.920 you said, this has more money than the largest of 0:10:06.960 --> 0:10:10.040 these semi transparent ets. People are not looking inside it. 0:10:10.080 --> 0:10:13.359 But the good thing is they're owning higher quality blueshift 0:10:13.440 --> 0:10:17.800 companies that will survive as opposed to riding the wave 0:10:18.160 --> 0:10:21.319 of the latest meme praise, which I think is the 0:10:21.800 --> 0:10:26.320 concern in general and in an interesting aspect of I 0:10:26.360 --> 0:10:29.000 think this episode is like, how much of this is 0:10:29.040 --> 0:10:32.800 just this raw enthusiasm? Um we have new phenomenons of 0:10:32.880 --> 0:10:35.000 the port Noise and the Cathy Woods of the world 0:10:35.000 --> 0:10:39.120 who can really um personalize things, and and people are 0:10:39.160 --> 0:10:43.079 investing in blind faith without actually recognizing what's inside the 0:10:43.559 --> 0:10:47.040 the e t f um Athanasios. Can we get your 0:10:47.040 --> 0:10:52.120 first pick? Yeah, this one's going away from like p billennials. 0:10:52.240 --> 0:10:54.960 I feel like this is a boomer pick. But all right, 0:10:55.040 --> 0:10:59.520 so the ticker is t MFC. All right, Motley Full 0:10:59.600 --> 0:11:03.520 one dread et F. Do you remember that newsletter Motley Full. 0:11:03.720 --> 0:11:06.000 I feel like there's something like my parents would read, 0:11:06.040 --> 0:11:08.200 Like they get like a in the mail, like a 0:11:08.240 --> 0:11:11.200 newsletter with like pictures and colors on it. All right, 0:11:11.240 --> 0:11:13.800 so they want they have this really strong following, like 0:11:13.880 --> 0:11:16.720 a million followers that read this newsletter. And they picked 0:11:16.760 --> 0:11:19.240 stocks and they say like, yeah, did it in investing 0:11:19.320 --> 0:11:21.960 or income investing or whatnot. So they launched this et 0:11:22.160 --> 0:11:25.920 F two years ago. I mean, it's not in the billions, 0:11:25.920 --> 0:11:28.120 but it's got four hundred million, which I think is 0:11:28.160 --> 0:11:31.480 really impressive, um, because it just I don't know. I I 0:11:31.559 --> 0:11:33.360 just think there's a stigma that like Motley Fools, a 0:11:33.400 --> 0:11:35.760 little bit more old school, and you look at it 0:11:35.960 --> 0:11:38.760 right and at the surface, it's just like Apple Microsoft, 0:11:38.800 --> 0:11:41.559 You're like, I'm paying fifty basis points for this, but 0:11:41.679 --> 0:11:45.000 it actually has been crushing the SMP five hundred since 0:11:45.040 --> 0:11:49.000 it launched by like and then I thought, maybe, well 0:11:49.040 --> 0:11:51.600 it's just house money. They maybe they put their own 0:11:51.640 --> 0:11:57.040 money into it. But it's pretty steady flows coming in consistently. Um. 0:11:57.080 --> 0:11:59.000 I feel like this is a pretty solid This is 0:11:59.040 --> 0:12:01.880 a good boomer pick because I don't think anyone would 0:12:01.880 --> 0:12:04.280 have expected this product to be If I mentioned this ticker, 0:12:04.520 --> 0:12:07.160 you would have said fifty million tops just still probably 0:12:07.160 --> 0:12:10.479 an initial steed. I think four million is pretty impressive 0:12:10.480 --> 0:12:13.480 for this product. And where the flow is coming from. 0:12:14.360 --> 0:12:16.880 I think it has to be newsletter followers. People that 0:12:16.920 --> 0:12:19.880 are following this newsletter, they probably are still subscribed to 0:12:19.960 --> 0:12:22.679 it and like either have an unsubscribed and they're still 0:12:22.760 --> 0:12:25.840 getting it like that email. Um, but it's it's I 0:12:25.880 --> 0:12:28.240 feel like this would be like an I just picture 0:12:28.280 --> 0:12:31.440 like an older investor who still gets their newsletter like 0:12:31.520 --> 0:12:33.920 their dividend picks, and he said, yeah, I'll buy I'll 0:12:33.920 --> 0:12:37.960 buy the Motley full et F. Why not you have 0:12:37.960 --> 0:12:40.640 a newsletter that could be his new strategy to to 0:12:40.640 --> 0:12:44.160 to track the boomers. Yeah, Like, I don't even think 0:12:44.160 --> 0:12:45.600 these news I need to be honest, I don't even 0:12:45.640 --> 0:12:48.800 think these guys were still publishing. To be honest, I 0:12:48.800 --> 0:12:51.120 had to go digging really deep into the abyss to 0:12:51.200 --> 0:12:54.360 find this one. Actually was you were going through the tickers. 0:12:54.400 --> 0:12:56.800 I was going through my brain of going, I don't 0:12:56.840 --> 0:13:00.840 know what that one is, um, And then I think 0:13:00.920 --> 0:13:03.160 this baron is there's need t F. That's Tide two 0:13:03.160 --> 0:13:07.640 barons also like the barons before. Hold on, let me 0:13:07.640 --> 0:13:09.839 look it up. Let's see. Okay, what do you think 0:13:09.840 --> 0:13:13.360 that has Todd? Don't look. I can't because I'm on 0:13:13.880 --> 0:13:16.560 recording this with you, but I think it's it's certainly less. 0:13:16.600 --> 0:13:18.520 I would guess it has a hundred and fifty million. 0:13:19.040 --> 0:13:22.920 Look at you, man, hundred and thirty five million. Your 0:13:22.960 --> 0:13:27.640 your e t F Jedi forces are are working well, alright, Eric, 0:13:27.720 --> 0:13:31.520 round out our first round. What's your first pick? My 0:13:31.600 --> 0:13:33.920 first pick is i'veall, which is one of the ones 0:13:33.960 --> 0:13:38.760 I tweeted out. This is uh the IVALL quadratic interest 0:13:38.880 --> 0:13:42.679 rate Volatility and Inflation Hedge ETF. So let me read 0:13:42.720 --> 0:13:44.160 to you. This is the e t F dot com, 0:13:44.200 --> 0:13:47.920 which has these nice little zagats descriptions of e t s. 0:13:47.960 --> 0:13:50.800 Here's what it says. It attempts to protect against inflation 0:13:50.800 --> 0:13:54.040 into hedge yield curve shifts and interest rate volatility using 0:13:54.040 --> 0:13:58.200 tips and long options evalls. Over the counter options on 0:13:58.240 --> 0:14:01.679 the US interest rate swap curve are described dada dada. 0:14:01.880 --> 0:14:06.600 So I know from experience that complexity doesn't really sell 0:14:06.600 --> 0:14:10.560 an ETFs and so and I met Nancy Davis a 0:14:10.559 --> 0:14:12.839 couple of times, heard her pitch it. She's very smart, 0:14:13.200 --> 0:14:15.160 and I just thought, okay, this might appeal to a 0:14:15.160 --> 0:14:19.320 certain kind of maybe really high end advisor or institutions. 0:14:20.120 --> 0:14:23.600 And it's got two point five billion and it's only 0:14:24.280 --> 0:14:27.320 launched in May, is two years old. That is amazing 0:14:27.360 --> 0:14:30.400 to me. And it charges basis points that is really 0:14:30.400 --> 0:14:33.320 on the high set. That's probably top five most expensive 0:14:33.360 --> 0:14:36.360 for E t F s. So it's complex, expensive and indie. 0:14:36.840 --> 0:14:38.640 In a way, it reminds me of ARC, where I 0:14:38.680 --> 0:14:41.360 was like, there's just so much going against this, and 0:14:41.400 --> 0:14:43.120 so to have two point five billion, I would have 0:14:43.240 --> 0:14:47.480 estimated million would be a success for this in two years. 0:14:47.520 --> 0:14:50.080 So it blew it away. And big reason it blew 0:14:50.080 --> 0:14:52.760 it away is that if you look at the performance, 0:14:53.240 --> 0:14:56.640 it's really good. It's got a nice steady rise. And 0:14:56.680 --> 0:14:59.040 so over the past two years since it came out, 0:14:59.040 --> 0:15:02.440 I'll give you the performance, So it is up since 0:15:02.480 --> 0:15:04.440 it came out. Now you'd be like, well, that's not 0:15:04.800 --> 0:15:07.640 that much, right, you know, the SMPS up more. True, 0:15:07.840 --> 0:15:10.040 but this isn't really competing against the SMP. If you 0:15:10.080 --> 0:15:12.320 look at the aggregate bond E t F it's up nine. 0:15:13.120 --> 0:15:16.520 And here's what's amazing, i'vall if you want to talk 0:15:16.560 --> 0:15:20.600 about the SMP, is about a sixth of the volatility. 0:15:20.680 --> 0:15:25.160 In other words, that is a very low, low, low vault, 0:15:26.120 --> 0:15:28.520 and that is hot and that's I think why it's 0:15:28.520 --> 0:15:31.720 selling so well. Yeah, and I just to add to it, 0:15:31.800 --> 0:15:35.200 what it's doing is it's owning Schwab tips E t 0:15:35.400 --> 0:15:40.720 F as its beta and then adding on using options 0:15:41.160 --> 0:15:43.720 to be able to get extra income and be able 0:15:43.760 --> 0:15:46.480 to reduce the downside to it. So this is true 0:15:46.520 --> 0:15:49.720 active management in the e t F rapper by using 0:15:50.440 --> 0:15:53.600 a core product and then amplifying on top of it, 0:15:53.640 --> 0:15:56.560 as opposed to you know these content. Nothing wrong with 0:15:56.720 --> 0:15:59.280 ARC and the concentrated picks, but it's nothing like the 0:15:59.400 --> 0:16:01.920 SMP five fundred. It's not starting with the SMP five 0:16:02.480 --> 0:16:04.720 and then pulling things out or adding to it. This 0:16:04.840 --> 0:16:07.320 is actually you know doing that. And to credit of 0:16:07.440 --> 0:16:10.560 Nancy because she's not doesn't have a team of wholesalers 0:16:10.600 --> 0:16:13.440 that's doing this. This is a true independent provider. Well, 0:16:13.440 --> 0:16:17.520 it's interesting because she pivoted from her hedge fund to 0:16:17.640 --> 0:16:21.600 launch this, and we we also saw the first hedge 0:16:21.600 --> 0:16:24.680 fund to convert itself into an um an e t F. 0:16:25.200 --> 0:16:26.840 So it's interesting to sort of think about how that 0:16:26.920 --> 0:16:31.120 might impact things going forward. If more managers do this 0:16:31.240 --> 0:16:35.400 kind of thing, I will say, the idea of a 0:16:35.520 --> 0:16:38.240 fund that helps with inflation, I think we're going to 0:16:38.320 --> 0:16:40.040 see more of those, I think with the success of this, 0:16:40.120 --> 0:16:42.760 and also that inflation is the new like scary word 0:16:42.760 --> 0:16:46.880 out there, and so I think that's this is gonna 0:16:47.120 --> 0:16:50.440 spark some not not copycats on this strategy exactly, but 0:16:50.560 --> 0:16:55.120 e t s that are geared towards the inflation situation. Okay, 0:16:55.160 --> 0:16:58.360 let's dude round to Todd. I'm gonna start with you again. 0:16:58.880 --> 0:17:02.120 What's your second pick? Yeah, So I hesitate to offer 0:17:02.160 --> 0:17:04.520 an I shares product because I shares an under the 0:17:04.640 --> 0:17:08.480 radar probably doesn't seem like it makes sense. But i 0:17:08.640 --> 0:17:11.920 q l T, which is the I Shares edge ms 0:17:11.920 --> 0:17:16.119 c I International Quality Factor e t F has three 0:17:16.119 --> 0:17:19.720 billion dollars in it um. That's nowhere near as big 0:17:19.760 --> 0:17:23.560 as it is for the US version of of the factors. 0:17:23.680 --> 0:17:27.400 But I've always thought of international investing being primarily done 0:17:27.440 --> 0:17:31.119 with a blunt instrument of ms c I EFA or 0:17:31.480 --> 0:17:33.639 m s c I emerging market based products at A 0:17:33.760 --> 0:17:36.000 shares and Vanguard has and I didn't think anybody was 0:17:36.040 --> 0:17:40.199 really doing factor rotation or factor exposure, especially something that 0:17:40.320 --> 0:17:41.639 Eric I'm sure is going to make fun of me 0:17:41.680 --> 0:17:45.280 for picking another boring blue chip high quality e t 0:17:45.480 --> 0:17:48.240 F that's out there because it owns it owns Roshan 0:17:48.320 --> 0:17:51.159 nest Ley in totality an s A P. But you 0:17:51.200 --> 0:17:54.560 know what it's beating i EFA and v e A 0:17:54.720 --> 0:17:57.720 by more than three hundred basis points. So the quality 0:17:57.760 --> 0:18:01.960 tilt is actually adding value pun unintended for what it is. 0:18:02.040 --> 0:18:03.840 I just didn't realize anybody was doing this. This is 0:18:03.880 --> 0:18:06.360 a three billion dollar et F I should has many 0:18:06.480 --> 0:18:09.560 three billion dollar ets, but I didn't think international factor 0:18:09.760 --> 0:18:14.040 would have been among them. Listen, quality, large caps, that's 0:18:14.080 --> 0:18:16.920 it's on brand. I would expect nothing less. I'm happy 0:18:16.960 --> 0:18:19.880 you brought that, and I'd be honest, I am shocked 0:18:19.880 --> 0:18:23.520 it has that much. Usually anything international over the past 0:18:23.560 --> 0:18:26.560 couple of years hasn't done well because it's lagged. So 0:18:26.600 --> 0:18:28.560 the idea they can get that much into this is 0:18:29.240 --> 0:18:32.399 is really amazing. I will say it's thirty basis points. 0:18:32.400 --> 0:18:36.399 That's a nice advisory low fee for that strategy, and 0:18:36.400 --> 0:18:42.560 that has to help. I fell asleep halfway through that pick. No, 0:18:42.800 --> 0:18:46.040 it's a it's a silod pick, uh. I think, you know, 0:18:46.200 --> 0:18:49.440 because now there's a rotation more into international. I feel 0:18:49.480 --> 0:18:52.440 like so instead of people maybe just going straight for IFA, 0:18:52.680 --> 0:18:55.600 this is a solid pick, you know, and quality might 0:18:55.640 --> 0:18:57.359 work a little bit better. I think on on an 0:18:57.400 --> 0:19:00.400 international scale like that, pointing out performs has been good, 0:19:00.400 --> 0:19:05.400 So this is actually a really it's a really good pick. Okay, clear, 0:19:05.760 --> 0:19:08.120 let's give you the my quick what's what's your second pick? 0:19:08.480 --> 0:19:11.760 So also a bit of an underdog compared to the 0:19:12.119 --> 0:19:13.920 billions there, but I think this is one of the 0:19:14.040 --> 0:19:17.520 least boring e t F s UM. I've been looking 0:19:17.600 --> 0:19:22.960 at at UFO, which is the Procure Space et f UM, 0:19:23.040 --> 0:19:25.480 and it's still pretty tiny. But I think what's really 0:19:25.520 --> 0:19:28.840 notable about it is that since Cathy would announce that 0:19:28.880 --> 0:19:31.879 she's going to be launching a space fund, she announced 0:19:31.920 --> 0:19:35.480 that back in mid January UM, the fund could come 0:19:35.480 --> 0:19:40.400 out any day. Now UFO has more than tripled in assets, 0:19:40.440 --> 0:19:44.320 so it's still only at a hundred and thirty one million, 0:19:45.000 --> 0:19:49.919 but you know, it's been trading since April UM and 0:19:49.920 --> 0:19:53.600 then just in the past what two months, it's uh, 0:19:53.720 --> 0:19:58.080 it's it's tripled. So I think it's a interesting sign 0:19:58.119 --> 0:20:00.439 of what may be to come for this fund and 0:20:00.560 --> 0:20:05.119 for any other space funds. So this is interesting UFO. 0:20:06.240 --> 0:20:09.040 What a gift it got. And Andrew Chaining has been 0:20:09.040 --> 0:20:12.360 through a nasty situation with one of his old issuers, 0:20:12.840 --> 0:20:14.680 and it was I was happy for him to get 0:20:14.720 --> 0:20:18.280 this gift. Because UFO hadn't was kind of kind of 0:20:18.320 --> 0:20:21.400 hanging around in oblivion and then boom this filing from ARC, 0:20:21.640 --> 0:20:24.000 which just shows you the power of Kathy. I mean, 0:20:24.040 --> 0:20:26.480 she's almost like Buffett at this point where she buys 0:20:26.480 --> 0:20:29.359 the stock or talks says the stocks in an interview 0:20:29.400 --> 0:20:32.280 when it goes up, and it was just it's nice 0:20:32.280 --> 0:20:34.000 for Andrew. I think some of that money will stick, 0:20:34.359 --> 0:20:37.280 maybe a couple of leaves for hers, but she's actually 0:20:37.320 --> 0:20:40.560 helping the whole category. I think we're going to actually 0:20:40.640 --> 0:20:44.880 see this become a true investment category. I think spacets 0:20:44.920 --> 0:20:48.400 there's a there's a little bit out there um from 0:20:48.400 --> 0:20:51.119 an investment perspective, but I think people are going to 0:20:51.160 --> 0:20:54.120 then look to see is there another option. Is there 0:20:54.160 --> 0:20:57.240 a a slightly cheaper or a slightly more index based 0:20:57.240 --> 0:21:00.600 approach to it, or differentiation? And I think this will 0:21:00.640 --> 0:21:03.960 be a chance for UFO to have an opportunity to 0:21:04.080 --> 0:21:07.359 highlight what makes it different than the active management approach, 0:21:07.400 --> 0:21:10.000 whereas right now it's it's way under the radars. As 0:21:10.040 --> 0:21:22.280 you mentioned, Claire hath nasias Um, what other ETF has 0:21:22.480 --> 0:21:25.760 surprised I almost want to guess I'll tell you, Okay, 0:21:25.800 --> 0:21:31.520 let's'm gonna I'm gonna let you guess. Uh. I feel 0:21:31.520 --> 0:21:34.160 like it's I feel like it's a first trust product. 0:21:35.840 --> 0:21:38.119 Am I right? No? I mean you're good, you know, 0:21:38.800 --> 0:21:42.440 but I went I went a different a different route. 0:21:42.600 --> 0:21:47.320 Knew that you were going to guess, and it was like, Eric, okay, okay, 0:21:48.240 --> 0:21:53.320 one more try is it one? Is it something that's China? No? Okay, 0:21:53.320 --> 0:21:56.280 all right, thank you, go ahead over to Okay, pick 0:21:56.680 --> 0:22:01.960 I pick Bug the Global x Diverse Security TF Soccer. Yeah, 0:22:02.000 --> 0:22:03.480 so let me tell you why. When you think about it, 0:22:03.480 --> 0:22:06.400